Credo Technology Group (NASDAQ:CRDO) Stock Price Down 17.7% – Time to Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price fell 17.7% during trading on Thursday. The stock traded as low as $110.83 and last traded at $112.33. Approximately 16,247,297 shares changed hands during trading, an increase of 112% from the average daily volume of 7,669,491 shares. The stock had previously closed at $136.50.

Key Headlines Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo and Oracle secured Open Compute Project approval for two optical telemetry standards. The approval supports more reliable AI data-center connectivity and could strengthen Credo’s position in next-generation infrastructure. Credo and Oracle Drive AI Optical Innovation
• Neutral Sentiment: Recent reports describe fears of a slower data-center buildout as a market concern, not a change to Credo’s guidance or analyst estimates. The potential impact on the company’s actual demand remains uncertain. Credo Sinks as AI Event Fears Rise
• Negative Sentiment: CRDO shares declined sharply for a second session amid a broader AI-hardware sell-off following Democratic election victories. Investors are concerned that policy or political pressure could constrain data-center expansion, creating a perceived risk to Credo’s growth outlook. Credo Sinks as AI Event Fears Rise
• Negative Sentiment: The pressure follows a broad decline in chip stocks as investors weigh the election results’ possible implications for the semiconductor and AI-data-center sectors. Chip Stocks Feeling Blue After Democratic Party Victories

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on CRDO shares. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. lowered their price target on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a research report on Wednesday, September 2nd. Mizuho dropped their price target on Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating on the stock in a research note on Monday, September 21st. Evercore set a $292.00 price objective on Credo Technology Group in a report on Wednesday, September 2nd. Finally, Rosenblatt Securities restated a “neutral” rating and issued a $235.00 price objective on shares of Credo Technology Group in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Credo Technology Group currently has an average rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Price Performance

The company’s fifty day moving average is $183.35 and its 200-day moving average is $180.64. The stock has a market cap of $21.11 billion, a PE ratio of 39.98, a PEG ratio of 0.60 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same period in the prior year, the company earned $0.52 earnings per share. The firm’s revenue was up 114.7% on a year-over-year basis. Analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Activity

In related news, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the sale, the chief technology officer directly owned 5,662,397 shares of the company’s stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,672 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $151.88, for a total value of $2,532,143.36. Following the sale, the chief executive officer directly owned 1,600,830 shares in the company, valued at approximately $243,134,060.40. This trade represents a 1.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 352,538 shares of company stock valued at $67,200,077 in the last quarter. 9.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CRDO. Atreides Management LP acquired a new stake in shares of Credo Technology Group during the 1st quarter worth approximately $102,434,000. The Manufacturers Life Insurance Company increased its holdings in shares of Credo Technology Group by 192.1% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock valued at $98,290,000 after purchasing an additional 688,596 shares in the last quarter. H&H International Investment LLC increased its holdings in shares of Credo Technology Group by 431.6% during the 1st quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock valued at $70,515,000 after purchasing an additional 609,900 shares in the last quarter. Oaktree Capital Management LP acquired a new position in shares of Credo Technology Group in the 1st quarter valued at $50,596,000. Finally, Pictet Asset Management Holding SA lifted its stake in shares of Credo Technology Group by 222.5% in the 3rd quarter. Pictet Asset Management Holding SA now owns 740,487 shares of the company’s stock valued at $144,170,000 after purchasing an additional 510,905 shares during the period. 80.46% of the stock is owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company’s portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.